DEN Networks Limited (DEN) AI Stock Analysis

• Market Cap: ₹13.43B
• Dividend Yield: N/A
• Average Volume (3M): 23.20K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 1.41
• Revenue Growth: -3.51%
• EPS Growth: -14.31%
• Country: IN
• Employees: 612
• Sector: Services
• Sector Strength: N/A
• Industry: Entertainment
• EPS (TTM): 0.80
• Shares Outstanding: 477,223,850
• 10 Day Avg. Volume: 33,704
• 30 Day Avg. Volume: 23,203
• PEG Ratio: -1.16
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 1.54
• P/FCF Ratio: -67.01
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: ₹30.00 ▼(-6.13% Downside)

DEN Networks Limited's overall stock score is primarily influenced by its mixed financial performance, with strong profitability but declining revenue and cash flow volatility. The technical analysis indicates bearish momentum, while the valuation suggests potential undervaluation. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Low leverage / strong equity base

DEN's high equity ratio and low debt position reduce financial risk and improve resilience. Over months, this lowers refinancing pressure, supports investment in last-mile infrastructure or digital transitions, and provides buffer against cyclical ad or subscription shocks.

Recurring subscription and carriage revenue

A subscription and carriage-fee model creates durable, contract-driven cash flows tied to household links and broadcaster relationships. This recurring revenue base supports predictability, bargaining leverage with channels, and long-term planning despite secular shifts in content delivery.

Healthy gross and net profit margins

Strong gross margins and a healthy net margin indicate structural pricing power and cost control in distribution. These margins provide capacity to absorb content cost inflation, invest in service upgrades, and maintain shareholder returns even if revenue growth is muted.

Negative Factors

Declining revenue trend

Sustained revenue decline signals structural pressure on subscriber counts or ARPU, shrinking scale and bargaining leverage. Over 2-6 months this constrains reinvestment, weakens channel negotiations, and undermines the sustainability of fixed-cost coverage and future growth initiatives.

Volatile and weakening free cash flow

Inconsistent operating cash generation increases liquidity risk and may force reliance on external financing for capex or working capital. This hampers strategic investments in broadband/digital upgrades and reduces the company's cushion against regulatory or competitive shocks.

Inconsistent operating margins

Variable EBIT/EBITDA margins, combined with EPS contraction (-12.62% year figure), point to unstable operational performance. Persisting margin volatility reduces forecasting reliability, limits free cash build, and raises execution risk for any long-term growth or transformation plans.

DEN Networks Limited Business Overview & Revenue Model

Company Description

DEN Networks Limited engages in the distribution and promotion of television channels through digital cable distribution network in India. It operates through Cable and Broadband segments. The company also offers cable TV, over-the-top entertainment, and broadband services. It serves approximately 13 million households primarily in 13 states in India, including Delhi, Uttar Pradesh, Karnataka, Maharashtra, Gujarat, Rajasthan, Haryana, Kerala, West Bengal, Jharkhand, Bihar, Madhya Pradesh, and Uttarakhand. The company was formerly known as DEN Digital Entertainment Networks Limited and changed its name to DEN Networks Limited in June 2008. DEN Networks Limited was incorporated in 2007 and is headquartered in New Delhi, India.

How the Company Makes Money

DEN Networks generates revenue primarily through subscription fees from its cable television services, which include various channel packages tailored to different customer preferences. The company also earns income from broadband internet services by offering high-speed internet access to its subscribers. Additionally, DEN monetizes its platform through advertising revenue by collaborating with broadcasters and advertisers to display commercials during programming. Significant partnerships with content providers and technology firms enhance its service offerings and competitive edge, contributing to its overall earnings.

DEN Networks Limited Financial Statement Overview

Summary

DEN Networks Limited shows mixed financial health with strong profitability and low leverage, indicating financial stability. However, declining revenue and cash flow volatility present challenges for growth and liquidity.

Income Statement

DEN Networks Limited's income statement shows a declining revenue trend over the years, with revenue dropping from 2021 to 2025. Gross profit margin is strong, but both EBIT and EBITDA margins have been inconsistent, revealing operational challenges. The net profit margin is relatively healthy, suggesting good cost management. However, the negative revenue growth rate is concerning for future prospects.

Balance Sheet

The balance sheet of DEN Networks Limited displays strong equity, with a high equity ratio indicating financial stability. The debt-to-equity ratio is low, suggesting limited leverage and reduced financial risk. Return on equity has been positive, reflecting profitability for shareholders. Overall, the balance sheet reflects a strong financial position, albeit with some fluctuations in asset management.

Cash Flow

Cash flow analysis indicates volatility, with fluctuating free cash flows over the years. The operating cash flow to net income ratio suggests that cash generation from operations is inconsistent, which could impact liquidity. The decline in free cash flow growth rate is a concern, indicating potential challenges in sustaining operations and growth without relying on external financing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	9.91B	10.05B	10.81B	11.04B	11.83B	12.90B
Gross Profit	3.87B	4.21B	4.74B	4.91B	5.56B	6.74B
EBITDA	2.21B	3.56B	3.62B	2.64B	3.24B	4.47B
Net Income	1.92B	2.00B	2.15B	2.43B	1.76B	1.98B
Balance Sheet
Total Assets	43.01B	41.42B	39.27B	37.59B	35.09B	34.54B
Cash, Cash Equivalents and Short-Term Investments	32.54B	31.98B	29.31B	25.15B	24.84B	23.94B
Total Debt	215.42M	229.83M	255.11M	275.97M	0.00	0.00
Total Liabilities	5.52B	4.83B	4.63B	5.03B	4.96B	6.14B
Stockholders Equity	37.09B	36.20B	34.20B	32.07B	29.53B	27.75B
Cash Flow
Free Cash Flow	0.00	-231.37M	883.17M	399.93M	258.53M	1.06B
Operating Cash Flow	0.00	183.00M	1.42B	1.39B	1.29B	2.18B
Investing Cash Flow	0.00	-217.79M	-1.25B	-542.63M	-2.58B	-3.61B
Financing Cash Flow	0.00	-71.55M	-65.93M	-1.15B	959.00M	1.34B

DEN Networks Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.96
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:DEN, the sentiment is Negative. The current price of 31.96 is above the 20-day moving average (MA) of 29.54, above the 50-day MA of 30.61, and below the 200-day MA of 34.18, indicating a bearish trend. The MACD of -0.90 indicates Positive momentum. The RSI at 40.04 is Neutral, neither overbought nor oversold. The STOCH value of 45.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:DEN.

DEN Networks Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GTPL	61 Neutral	₹8.83B	21.33	―	2.00%	8.43%	-36.53%
DEN	60 Neutral	₹13.43B	7.15	―	―	-3.51%	-14.31%
HATHWAY	60 Neutral	₹18.82B	18.09	―	―	3.88%	-3.40%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SITINET	39 Underperform	₹427.31M	-0.21	―	―	-6.97%	-25.25%
DISHTV	38 Underperform	₹6.41B	-0.91	―	―	-22.62%	66.73%

DEN Networks Limited Corporate Events

DEN Networks Announces Management Change with CTO’s Retirement

DEN Networks Limited has announced a change in its senior management, as Mr. Sanjay Kumar Jain, the Chief Technical Officer, has retired from his position effective November 30, 2025, due to superannuation. This change in management is a significant development for the company, potentially impacting its technical operations and strategic direction, as Mr. Jain’s departure marks a transition in leadership within the technical team.

DEN Networks Reclassifies Access Equity Private Limited

DEN Networks Limited has announced the approval for reclassification of Access Equity Private Limited from the ‘Promoter Group’ category to ‘Public’ under the SEBI regulations. This change, effective from November 28, 2025, reflects that AEPL no longer holds any equity shares or voting rights in the company, potentially impacting the company’s shareholder structure and market perception.